Sterling drops notably just after September consumer inflation data came in lower than expected. Headline CPI slowed to 2.4% yoy, down from 2.7% yoy and missed expectation of 2.8% yoy.

Core Inflation slowed to 1.9% yoy, down from 2.1% yoy and missed expectation of 2.1% yoy.

The ONS noted that “The largest downward contribution to the change in the came from food and non-alcoholic beverages, where prices fell by 0.1% between August and September 2018 compared with a rise of 0.8% between the same two months a year ago.

The main effects came from meat where prices fell, between August and September, this year but rose a year ago and from chocolate.